BUSINESS FINANCE TYPE GUIDE

Commercial Hire Purchase: With a CHP, ownership of the goods rests with the lender however the borrower is given the opportunity to purchase the asset by making all the payments, which may include a balloon payment at the end of the term. As with the Finance Lease, the asset appears on the lessee’s balance sheet less depreciation.

Disclaimer: The above is a generic representation only. It does not constitute financial advice or mortgage structuring advice. It is only to be used as a guide only. Please discuss your financial needs with a financial planner, accountant or your banking representative. No reliance should be placed on the above information.